Inventory Transactions

William runs a small business. He increases Assets, Liabilities, and Owner's Equity. What is he doing?

• A credit purchase of inventory

• A credit sale of inventory

• A sales return of inventory

• An inventory Gain

Grace runs a small business. She recently made a transaction that overall increased her assets, increased her liabilities, and had no effect on her owner's equity. What type of transaction did Grace make?

• A sales return

• A purchase return

• A cash purchase of inventory

• A credit purchase of inventory

Aria sold some inventory at a loss, which decreased both her assets and owner's equity. What is this scenario called?

• Inventory Gain

• A Sales Return

• Inventory Loss

• Purchase Return

Samuel donates some of his store's inventory to a local charity. How does this affect his accounting records?

• A donation of inventory

• An inventory Loss

• Drawings of inventory by the owner

• All of the above

Emma decides to return some goods she had purchased earlier. Overall - I Decrease Assets, Decrease Liabilities and Decrease Owner's Equity

• Drawings of inventory

• A sales return

• A purchase return

• None of the above

Hannah runs a small business. She decreases Inventory, decreases Liabilities, and has no effect on Owner's Equity. What transaction did she likely perform?

• Purchase return

• Credit Purchase

• Credit Sale

• Sales Return

Henry donates inventory to a local charity

• Increases Assets and Increases Owner's Equity

• Increases Assets and Increases Liabilities and Owner's Equity

• Decreases Assets and Decreases Liabilities and Owner's Equity

• Decreases Assets and Decreases Owner's Equity

Kai runs a small business and recently had to return some inventory to a supplier. A sales return of inventory

• Increases Inventory; Decreases Accounts Payable and Net Profit

• Increases Inventory; Decreases Accounts Receivable, GST Payable and Decreases Net Profit

• Decreases Inventory; Increases Accounts Receivable, GST Payable and Increases Net Profit

• None of the above

Anika runs a small business. She increases her Assets and Increases her Liabilities and Increase Owner's Equity - What is she doing?

• A sales return

• A purchase return

• A cash sale of inventory

• A credit sale of inventory

Liam runs a small business. He recently made a credit sale of inventory. What does this transaction do to his financial statements?

• A sales return

• A purchase return

• A cash sale of inventory

• A credit sale of inventory